ECON 1000 Lecture Notes - Lecture 4: Reservation Price
Document Summary
Chapter 4 notes: money asset that is socially and legally accepted as payment for goods/services. Three functions of money: medium of exchange asset used as payment when purchasing goods/services, store of value asset that serves as a means of holding wealth, unit of measure basic measure of economic activity. In contrast, at any price below john will not voluntarily sell. Likewise at any price above christine will not voluntarily buy. Law of demand all other factors fixed, a greater quantity of a good will be demanded at lower prices (demand curves are downward sloping)
